San Jose Multifamily Report – December 2025
Silicon Valley recorded the state's highest rise in asking rents last year.
San Jose entered the fourth quarter of 2025 with multifamily fundamentals holding up relatively well considering the wider economic climate. Average advertised asking rents slid 0.1 percent, on a trailing three-month basis through October, to $3,310—10 basis points ahead of the nation—following a six-month period of slowing gains. Year-over-year, however, San Jose asking rents were up 3.7 percent through October, ahead of both the nation (0.5 percent) and all other major California markets, including San Francisco (3.4 percent), Los Angeles (0.3 percent), Sacramento (-0.1 percent) and San Diego (-0.5 percent).
Further, occupancy in stabilized assets climbed 40 basis points, to 96.7 percent, once again outpacing the 94.7 percent U.S. figure. Silicon Valley employment slid 0.2 percent through August 2025, down to 100 basis points behind the U.S. and continuing an eight-month streak of contractions. In the 12 months ending in August, the metro lost a net 2,000 jobs, with education and health services standing out as a strong performer (up 8,600 positions), while professional and business services lost the most jobs (-8,100). Several ongoing projects promise to boost the health-care sector, including a new, $422 million inpatient psychiatric facility.
Completions slowed down across metro San Jose, with developers adding 3,769 units in 2025 through October. Meanwhile, investment activity picked up, with $1.5 billion trading—already exceeding every other year since at least 2015.
